Q & A: YELLOW DOOR ENERGY SOUTH AFRICA
How are rising electricity costs influencing FMCG companies’ shift to renewable power? Rising electricity costs have been a major push factor for us, and this has been the case for many years. Grid tariff increases continue to outpace inflation, whereas renewables procured through a PPA typically escalate only at around CPI( approximately 5 %). This differential has made renewables increasingly attractive as a longterm cost-control strategy.
What role does consumer demand for sustainable products play in energy decisions? South African urban consumers are increasingly receptive to environmentally responsible brands. ESG reporting also plays a significant role in investor relations. In short, people want to see companies acting responsibly. Large retailers now have public climate commitments and are being held accountable by investors and the media, which shapes public sentiment.
These commitments also cascade down the supply chain, meaning suppliers must decarbonise to maintain relationships with major retailers. Exporters can benefit as well, as products with a lower carbon footprint naturally hold a competitive advantage in international markets. Mechanisms like the EU’ s CBAM currently affect heavy industry, but FMCG may be included further down the line. significantly lower unit costs( R / kWh), and full coverage of operations, maintenance and repowering by the IPP. Savings also depend heavily on correct system sizing for both PV and BESS.
Where diesel generators are used, adopting PV and BESS are cleaner and far more cost-effective options. Additional financial gains, often not accounted for, include improved production uptime, reduced downtime, lower spoilage, and protection of critical processes.
Which renewable technologies are gaining the most traction in the consumer goods sector?
In the FMCG sector, the most widely adopted technologies are:
• Rooftop and ground-mounted solar
• Hybrid PV and BESS systems
• Wheeled solar and wind energy
How are grid instability and load shedding affecting renewable energy uptake? Load shedding used to be the primary driver of renewable energy adoption. Today, grid outages, often caused by poor maintenance of upstream infrastructure, have taken centre stage. Solar alone cannot protect businesses from outages or poor power quality; this is where BESS becomes essential. While BESS on its own can address many of these issues, pairing it with solar provides far greater value.
What are the financial advantages FMCG manufacturers seeing from renewable energy uptake? The financial benefits are substantial, with clients seeing savings from commercial operation date( COD), particularly through PPA structures that require no upfront capital. Advantages include tariff hedging, sabusinessintegrator. co. za 53